Lira Drops After Erdogan Says Stance on S-400s Remains Unchanged

(Bloomberg) -- Turkey’s lira extended losses against the dollar after President Recep Tayyip Erdogan said his nation’s stance remains unchanged on the S-400 missile-defense system it purchased from Russia.

The remarks, coming directly after Erdogan met with President Joe Biden on the margins of a NATO summit in Brussels on Monday, dashed hopes for a breakthrough on a key issue that’s strained ties between the two countries, which have the two largest armies in the transatlantic alliance.

Turkey’s purchase of the S-400 missiles has rattled NATO allies and resulted in U.S. sanctions, with the U.S. saying the system could be used to gather intelligence and endanger the U.S.’s F-35 stealth warplanes. Washington has repeatedly said Turkey should abandon the missiles for sanctions to be lifted.

The Turkish currency fell 0.9% to 8.4655 per dollar as of 9:30 p.m. in Istanbul

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